Bahawalnagar Campus DEPARTMENT OF COMMERCE

Internship Report
On The Bank of Punjab
Baghban pura Branch Lahore

SUBMITTED BY: ROLL NO: Program: SESSION: Duration of internship:

M.Mohsin Bilal 40 B.Com(Hons)IT (2007-2011) 28-08-2011 to 28-10-2011

Dedication
I dedicate this work especially most honorable teachers who give me this great opportunity to grow our abilities our knowledge .its all about my loving teachers whose prayers and love always with us not in study but at every part of my life. And my parents with out there prayer I am not anything.

Acknowledgement
I offer my humblest thanks to ALMIGHTY ALLAH, The most Beneficent and the Most Considerate and the entire source of all knowledge and wisdom. I thank ALMIGHTY, ALLAH, who gave me the aptitude to do this project efficiently and successfully. I offer my humblest respects to the HOLY PROPHET HAZRAT MUHAMMAD (Peace Be upon Him) who is, forever a torch of guidance and knowledge for humankind as a whole. I faced a lot of difficulties during this phase of developing internship report. But Allah gave me a lot of patience and due to the continuous encouragement of my teachers and other people concerned; I was able to complete this project. Id like to mention Mr. Sajid Ameen. I also pay my regards to all others whose names can not be included due to the scarcity of space and time. At the end Id like to thank to my bank manager and my internship colleagues as well, whose company was a cause of support and motivation, because without naming them this acknowledgement will be incomplete.

Table of content
Chapter# 1 about bank of Punjab

Organizational Hierarchy Chapter# 2 Chapter# 3 Chapter #4 Chapter# 5 Chapter# 6 Chapter# 7 Clearing Department Advance Department Marketing department Audit Department Remittance Department Financial Statement Analysis

Horizontal Analysis Vertical Analysis Ratio Analysis. Net profit margin Liquidity Ratio Lesage Ratio. Chapter# 8 PEST & SWOT Analysis

Learning As a Student Internee Recommendation . Conclusions. APPENDIX Financial Statement

EXECUTIVE SUMMARY

This report has been divided into different sections. In the very first section I have given the introduction of banking sector in general and as well as in Pakistan. In this section I have also tried to explain the major functions and activities of a bank. In second phase I have given a brief introduction of The Bank of Punjab, its management structure and divisions, and its contribution towards economy. I have also included the brief introduction of the branch where I carried out my internship that is BOP branch Bahawalnagar, the online resources in the branch, and various departments, which are currently working in the branch. In the third phase I have discussed each department of the branch individually in a very basic fashion. I have discussed the accounts opening, remittances, clearing, advances and locker departments. As I have not studied forex and cash department so I have put it under the category of others department. To show the working of each department I have used the pictorial diagrams called data flow diagrams to give the reader of my report an immediate view/idea of working of departments in the branch. In the end I have performed the financial analysis of the bank of Punjab by calculating some ratios and on the basis of the results of these ratios have given some findings about the bank. During my stay in the branch I have performed a SWOT analysis to find out strength, weaknesses, threats and opportunities in the branch. On the basis of SWOT analysis I have given some recommendations, which I think can prove in the best interest of the organization if adopted.

Chapter#1 ABOUT the bank of Punjab

The Bank of Punjab Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled commercial bank with its network of 273 branches at all major business centers in the country. The Bank provides all types of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency, Remittances and Advances to Business, Trade, Industry and Agriculture. The Bank of Punjab has indeed entered a new era of science to the nation under experience and professional hands of its management. The Bank of Punjab plays a vital role in the national economy through mobilization of hitherto untapped local resources, promoting savings and providing funds for investments. Attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital requirements and money market operations are some facilities being provided by the Bank. The lending policy of Bank is not only cautious and constructive but also based on principles of prudent lending with maximum emphasis on security. As agriculture is considered as backbone of our economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers.

Organizational Hierarchy:

Chairman President Board of directors Managing Directors General Managers (Division Managers) Regional Managers Chief Manager Branch Manager

Chapter#2 CLEARING DEPARTMENT

Clearing is the most important department of the bank performing various functions.

CLEARING HOUSE
A clearinghouse is an organization of the member banks, working under SBP and which is for the purposes of setting inter banks claim resulting from transmission of funds from one bank to another. The branch cheque/instruments are credited into the account of the customer. The clearing can be:

OUTWARD CLEARIN
The instrument collected or stored bank wise and a schedules is prepared separately for each bank mentioning the total number of instruments and the amount of the instruments. Then these are recorded in a register called OUTWARD CLEARING REGISTER then a main schedule is prepared showing the total number of cheque and their aggregate amount being presented in the clearing. The cheque/instruments are handed over the clearing branch. Central clearing branch issue CREDIT ADVICE to the branch for passing credit to its customer immediately. The branch on receiving credit advice debits the clearing account and credits the respective customer accounts.

INWARD CLEARING
On receiving cheque/instruments from central clearing branch, the in charge checks the number and amount of cheque received in clearing must tally with the main schedule received from central clearing branch. These cheque/instrument are entered in INWARD CLEARING REGISTER for the cheque/instrument passed in clearing is a credit advice for the aggregate amount of cheque passed in clearing is prepared, drawn on central clearing branch.

RESERVE AT STATE BANK

Deposit held by bank at SBP serves as check clearing and collection balances. Rather than physically transferring funds between banks, check clearing and collection can be done by simply debiting or crediting a banks account at SBP.

Chapter#3 ADVANCES/CREDIT DEPARTMENT

It is the loan function, which produces the major person of banks income, and as such it is the major areas of professional bankers concern and attention.

PRINCIPLES WHILE ADVANCING

Basically there are five principles that must be duly observed while advancing money to borrowers. Safety Liquidity Disposal Remuneration

Suitability FORMS OF LENDING

Many there are two types of advances: Short-term (maturity within one year) Long term (maturity with the period of more than one year) However they are further classified as: Running Finance Demand Finance Cash Finance Letter of Guarantee

RUNNING FINANCE
This form of finance was previously known as overdraft. When a customer requires the temporary accommodation, his bank allows withdrawal his account in excess of credit balance, which the customer has in its account, a running finance occurs. The accommodation is thus allowed collateral security. When it is against collateral securities, it is called a Secured Running Finance and when the customer cannot offer any collateral security except his personal security, accommodation is called a Clean Running Finance. The customer is in advantageous position in running finance because he has to pay the mark-up only the balance outstanding against him on daily product basis.

DEMAND FINANCE
This is common form of financing to commercial and industrial concerns and is mad available either against pledge or hypothecation of goods produce or merchandise. In Demand Finance the party is financed up to a certain limit either at once or as and when required. The party due to facility of paying mark-up only on the amount it actually utilizes prefers this form of financing Quoted or Unquoted Registered Bearer Inscribed Ordinary Shares Preferred Shares

ADVANCES AGAINST IMMOVABLE PROPERTY

A mortgage is the transfer of and interest in specific immovable property for the purpose of securing the payment of the money, advanced or to be advanced. By way of loan, and existing debts or the performances of the engagement this may rise the pecuniary liability. The transfer is called the mortgager and the transferee the mortgagee the principal money and interest of which payment is secured for the time being and instrument by which the transfer is effected, is called the letter of the mortgage deed.

Availability of adequate flows of credit for industry and agriculture are a sine qua non for the growth and development of an economy. This acquires added importance when agriculture is the mainstay of the economy as also the sector where the bulk of the poor are concentrated. Growth and productivity in Pakistan's agriculture has slowed down in recent years and is, therefore, of serious concern given its importance for the economic prosperity of the country. Apart from various other weaknesses in the infrastructural support of the agricultural sector, inadequacy and lack of efficacy of credit, flows to support agriculture related activities has been a major constraining factor. Agriculture is the largest sector of the economy. It contributes 25 percent to GDP, provides raw materials to 80 percent of industry and employment to over 50 percent of the population.

Chapter#4 MARKETING DEPARTMENT

The marketing department of the Bank of Punjab doing wonderful j o b . Because of competition in market there are may other Bank is exiting in the market at that time Bank of Punjab also run a marketing campaign specially in cotton belt for limit from Ginner & Oil Miller. B a n k o f P u n j a b u s e a m a r k e t i n g s t r a t e g y w i t h d i f f e r e n t w a y a n d d i f f e r e n t scheme

UTILITY SERVICES
Keeping in view the difficulties faced by the general public BOP has taken the initiative to provide service for collection /receipt of utility bills on behalf of WAPDA, Sui Gas, Paktel ,Interphone and WASA from 9.00am 4.00 p.m. all the branches through out the countries are observing this practice to ease the long queues lined up at the counters of banks. In order to keep up with the pace of innovation the information industry; the bank has launched its Web site. Readers can view our web page and covers with the management and can also send their queries /suggestion on the E -mail at t h e address given on the last page .T h e b a n k o f P u n j a b h a s a l s o p l a n n e d t o c o m p l e t e i t s b r a n c h a u t o m a t i o n through computerization for its major working branches at the end of the year 2005.So far 29 branches have been computerization . the treasury at Karachi has been linked with our head office through on line system exclusively designed developed for eliminating the communication gap. REUTERS

information system has been installed at international division to maintain track record of foreign exchange and currency fluctuation. in order to safeguard the interest of depositor ,close circuit TV cameras have also been installed at all the main branches

of the bank. Chapter#5 Audit Department

This department ensures appropriate system of checks and balances. It checks all the irregularities, errors and forgeries if any, under the rules and regulations formed by the Government of Punjab. For this purpose it doesnt only keep and eye on the branches in their vicinity but also conduct surprise and comprehensive audits of the branches. This strategy has improved working at the branch level. It not only points out the discrepancies but also tries to solve it. Surprise audit maintain a good check on the over all working of the branch especially of the side of finance.

Chapter# 6 REMITTANCE DEPARTMENT

Remittance is a major function of the bank. It is the transfer of money from one place to another place. The need for remittance is commonly felt in commercial life particularly and in everyday life generally. By proving this service to the customers the Bank of Punjab earns a lot of income in the form of service charges. The Bank of Punjab deals with the following type of remittances: -

MAIL TRANSFER:
It is the transfer of money from one branch to another branch of the same bank through mail service. In mail transfer there is no need of advice as the amount is directly credited to the receivers account.

Procedure
First a voucher is filled in whish the sender writes the amount to be sent, name, account number of the receiving person with the branch name and date.

A credit voucher is filled in order to deduct exchange, postage charges according to the amount of the mail transfer. The sender deposits the total amount in the cash department. The cash officer gives the vouchers to the officer after affixing received cash stamp and writing the amount in red ink. Then the officer writes the amount paid in the cash scroll and gives the MT to his assistant. MT leaf is filled according to the information provided in credit voucher. He also writes the same information in the MT register. Then he gives the MT leaf and MT register to the officer for authentication.

TELEGRAPHIC TRANSFER
This is the most urgent method of remitting the money from one place to another place. This method is used when the sender desires to send urgently, in this case the sender request the manager of the branch to issue TT.

PAY ORDER
A pay order is a written order issued by the bank on its own branch, drawn upon and payable by itself to pay a specified sum of money to the person. The purpose of a pay order is to transfer the fund from one place to another. It is usually not issued in favor of the parties of other cities. Usually the pay order is issued for the local transfer of money from one person to another or from the person to any other department. It is used for different purposes. The purpose may be the repairs of the branch or renovation of the branch.

Chapter#7 FINANCIAL STATEMENT ANLYSIS HORIZONTAL ANLYSIS:

Comparison of Two or more years financial statement is called Horizontal Analysis. It shows the changes between years both in rupee and percentages form. So in this way it facilitates the analyst to predict about the ways if the business in which it is going. It emphasis the proportional relationship between the reporting periods, rather than with in the reporting period.

HORIZONTAL ANALYSIS OF BALANCE SHEET

Balance Sheet For the year ended December 31, 2006, 2007, 2008 Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Other assets Liabilities Bills payable Borrowings Deposits and other accounts Liabilities against assets subject to finance lease 100.0 100.0 100.0 100.0 109.5 255.3 139.4 98.4 142.4 175.7 46.5 74.7 2006 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2007 101.1 51.8 20.7 260.2 132.1 157.2 160.1 2008 76.0 58.5 5.3 80.4 130.0 167.8 169.3

Deferred tax liabilities Other liabilities Total liabilities Represented By Share capital Reserves Un-appropriated profit

100.0 100.0 100.0 100.0 100.0 100.0 100.0

738.6 105.9 117.8 145.7 163.7 107.3 141.8 162.1 1,129.7 182.2 163.7 (237.9) 47.4

Horizontal Analysis of Profit and loss account

Profit and Loss Account For the year ended December 31, 2006, 2007, 2008 Description Mark-up/return/interest earned Mark-up/return/interest expensed Net mark-up/ interest income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly Net mark-up/ interest income after provisions Non Mark-up/interest Income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale and redemption of securities Other income 100 100 100 100 100 2006 100 100 100 100 100 100 100 2007 151.5 142.6 88.4 474.5 74.2 246869.0 46.3 138.1 130.2 157.3 524.2 117.4 -489.4 122.1 145.8 135.2 188.6 112.8 2008 153.3 221.3 28.0 4520.7 1110.3

Total non-mark-up/interest income Non Mark-up/interest Expenses Administrative expenses Provision against off balance sheet items Other charges Total non-mark-up/interest expenses Extra ordinary/unusual items Profit Before Taxation Taxation - Current - Prior years - Deferred Profit After Taxation Un-appropriated profit brought forward Transfer from surplus on revaluation of fixed assets - net of tax Profit available for appropriation Basic Earnings per share Rupees Diluted Earnings per share Rupees

100

183.6

141.6

100 100 100 100 100 100 100 100 100 100 100 100 100 100

143.4 166.9 99868.4 121.6 101.6 19.2 300.4 116.9 1895.7 95.0 192.7 116.6 127.7

178.3 301842.1 155.4 -353.0 23.6 -9623.9 -264.4 2033.3 90.2 -165.8 -181.0 -165.2

Vertical Analysis
In this report I shall use this type of comparative financial statement analysis to analyze the performance of The Bank of Punjab. A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantages of vertical analysis is that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes within one business.

Vertical Analysis of Balance sheet

Balance Sheet For the year ended December 31, 2006, 2007, 2008

Description Total assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets Total assets Liabilities Bills payable

2008

2007

2006

185,909,120. 234,974,195. 164,855,137. 5.75 1.17 0.34 12.22 70.86 1.87 4.51 3.29 100.00 0.66 6.05 0.82 1.04 31.26 56.98 1.38 2.46 100.00 0.40 8.53 2.26 7.19 17.13 61.46 1.25 2.19 100.00 0.52

Borrowings Deposits and other accounts Liabilities against assets subject to finance lease Other liabilities Share capital Reserves Inappropriate profit

6.60 87.67 0.02 2.46 4.00

7.59 79.66 0.02 1.27 3.16

4.24 82.33 0.02 1.71 2.75

-4.12 2.72 100.00

1.47 6.43 100.00

1.95 6.47 100.00

Vertical Analysis Profit and loss Account

Profit and Loss Account For the year ended December 31, 2006, 2007, 2008

Description 2006 2007 2008

Total income

21935795 2296188

14533425

Mark-up/return/interest expensed 75.7392 Provision against non-performing loans and advances 70.1984 7.0395 2.343742 46.6397 51.66569

Provision for diminution in the value of investments

1.67026

0.1066

0.227062

0 Bad debts written off directly

1.0751250 0.000688

Administrative expenses 12.76421 Provision against lending to financial institutions 0.046048 0 0.894489 9.802230 10.80247

Provision against off balance sheet items

0.0012716 0.001204

Other charges

0.522889

0.1652738 0.000261

Taxation - Current 0.946398 - Prior years 4.79581 - Deferred -36.6205 Transfer from surplus on revaluation of fixed assets - net of tax 0.025401 Profit available for appropriation 30.09278 33.40636 27.38684 0.0255466 0.042481 1.0921227 0.574324 -0.086756 0 0.737099 6.061867

RATIO ANALYSIS The relationship of one item to another expressed in simple mathematical form is known as a ratio. A single ratio in itself is meaningless because it does not furnish a complete picture. A

ratio becomes meaning full when compared with some standard. So we have taken ratios and percentage of the BOP based in its record of the past financial and operating performance. On the following pages, I make the analysis of the financial statements of BOP by using related items for the last five years. Net Profit Margin 2008 Net Profit Margin Net profit / Income 59.76 2007 91.74 2006 79.78

The net profit margin of three years indicates that the income of the BOP after paying its nonproductive expenses has increased in the last year but in the current year it has decreased by a margin, which is not a good sign for the bank. Earning asset to total asset ratio 2008 Earning asset to total asset ratio Earning assets/Total assets 85.28 2007 90.67 2006 87.03

Earning assets of BOP are showing mix trend. It has increased in the previous year but in the current year it has decreased. This ratio should be as high as possible because it has a great importance for an investor to invest in the Bank of Punjab.

Net Profit Margin 2008 Gross Profit Margin Gross Profit /Total Income -63.40 2007 31.07 2006 45.70

Gross Profit ratio is decrease in 2007 and 2008. It is also not favorable for the bank. This ratio show that the bank is going into the loss from last two years.

Advances to Deposits Ratio 2008 Advances to Deposits Ratio Advances / Deposits 205.60 2007 69.75 2006 73.57

Advances to deposits ratio of The Bank of Punjab shows that the portion of loan in total deposit of the bank is not stable, In three year from 2006 to 2008 decrease then increase. It means that the credit (advances) circulation of the bank is not stable, which is a not a good sign. Cash to deposits Ratio 2008 Cash to deposits Ratio Cash / Deposits 20.08 2007 8.41 2006 12.91

Cash to deposit ratio shows the percentage of the cash with the proportion of the deposits by the customers. This ratio has increased after decreasing a bit in the previous year which is a good sign for the bank. Equity to Deposit Ratio 2008 Equity to Deposit Ratio Equity/ Deposits 8.25 2007 2.20 2006 2.11

This ratios is showing increasing trend. This means that deposit of the banks are decreased in 2008 which is not good for the Bank of Punjab. Interest income to average Earning assets

2008 Interest income to average Earning assets Interest income/Total average assets 0.54

2007 1.80

2006 2.95

This ratio is showing that the portion of the interest income as a portion of earning assets is decreasing as the years pass. The ratio is decreased from 2.95 to 0.54 in current year. This shows the in efficiency of the bank management. Deposit to total liabilities 2008 Deposit to total liabilities Deposits/Liabilities 35.17 2007 2006

1,010.59 854.09

This ratio is showing extreme behaviour in the years under review. It has a high increase in the year 2007 but in the current year this ratio has decreased a lot. There may be a lot of reasons behind this uneconomical change in the ratio. Return on total assets 2008 Return on total assets Net profit/Total assets (3.55) 2007 3.26 2006 2.41

Return on assets ratio is negative position of the firm in the current year. The ratio has increased a bit in the last year. But in the current it is showing negative results which means the firm is facing loss in the current year. This analysis is only based on the calculated ratios which may be deceiving for any decision making. For any financial decision auditors and directors audited reports and other relevant financial data is required.

Chapter #8 PEST ANALYSIS

PEST analysis of any industry investigates the important factors that affect the industry and influence the companies operating in the sector. PEST stands for Political, Economic, Social and Technological analysis. The PEST Analysis is a tool to analyze the forces that drive the industry and how those factors can influence the industry

POLITICAL
Pakistan is a political instable country and no Government has run for long time. The Government polices are change very frequently. The Bank of Punjab also faces very political problems like other institution in Pakistan. As like the Bank of Punjab scandal and the involvement of Hamish Khan was being politicized.

ECONOMICAL
Our economical condition is not suitable due to rapid increase in prices, devaluation of our currency and change interest rates. Government imposes new kind of tax to generate his revenue. Like all other business institutions the Bank of Punjab also faces economical problems.

SOCIAL
The Bank of Punjab is not having any problems of culture, because it is not a International bank. The management of The Bank of Punjab tries to fulfil the expectations of public.

TECHNOLOGICAL
Rapid increase in technology is also a major problem for any business institution. The Bank of Punjab has increased his technology and tries to use modern technology, but it is behind from some banks

SWOT Analysis

SWOT analysis is a process to identify where we are strong and where we are vulnerable, where we should defend and where we should attack. It tells us our strengths, our weaknesses, the opportunities which prevail in the market and the threats which we may face from our competitors and other from other potential factors. The overall assessment of an organizations strengths, weaknesses, opportunities and threats is called SWOT analysis. In SWOT analysis the best strategies accomplish an organizations mission by: Exploiting an organizations opportunities and strength. Neutralizing it threats. Avoiding or correcting its weakness.

SWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context; managers assess internal strengths distinctive competencies, weakness, external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses.

Strength
Bank is in its growing stages so there is good financial position. Professional & committed workforce Low cost than other major banks Increase the no. of branches in the country Successfully launching new products lines Well experienced & qualified staff Efficient internal communication system Each department in the bank is fully allowed to take adequate decisions of its own, saving the time & help in achieving the objectives

Weakness
Lack of proper internal controls due to lack of strong system is one of the major weakness of BOP. It is also pointed by the auditors in their review.

 The employees turnover of BOP is greater the major reason is due to not market commensurate salary and benefits. BOP has formulized a lot of products and services for its customers, even more than other commercial banks, but there is only little advertisement on electronic media which creates hindrance for the promotion of the products and services. Some of the employees were burdened with over work. So I think that the work should be distributed according to their post and capabilities. The BOP has recruited much fresh blood in the Bank who has not sufficient skills and experience to run the business of the bank. This is the sensitive weakness of the bank. The BOP is maintaining large deposit of Govt. departments and low deposit of private sector. Any change in the Govt. can badly affect the Bank of Punjab. The profitability of the BOP is declining which is alarming for the BOP and creating worst image in the market

Opportunities
Extension of international network of the branches Introduction of innovative products Growing market ATM facility for all customers More incentives should be given to skilled staff Use of new technology used to increase the staff efficiency of work Adoption of new methods of training and recruitment Introduction of new schemes of deposits Profit can be increased through effective and efficient marketing

Threats
Uncertain economic conditions Action taken by competitors Strong competition in the market Deposit growth can be slowdown due to the lack of customer trust on BOP Changing in the government policies and instability of the government More investment in agriculture sector

Chapter#9 LEARNING AS A STUDENT INTERNEE

8 week internship at The bank of Punjab baghban pura branch Lahore will surely impact my career in a positive way. Many things I have learnt there .I have come to know that how to deal with the customer at bank and how to facilitate with the basic information. During this time period I this training made me capable of opening an account and what are the in formations required from customer.KYC(know Your Capital) is the considered very important in banking. I also came to know how clearing department works and which are the parties involved in it what is the procedure of clearing for inward and outward clearing. I am pleased to have an a good working experience in remittance department. There was very strict rule and regulation to be followed in this department in connection to the cash room. Working in this department provide me additional information about DD (Demand Draft), PO (Pay Order) and CDR(Call Deposit Receipt). I learnt What is demand draft, pay orders how it is prepared and which parties are involved in it? I am now quiet familiar with the clearing procedure for OBC and the internal transfer at bank. In short this whole was a good experience at the Bank because this was a challenging environment for every one who was working there.

Recommendations
To retain customer, bank should adopt competitive rates for its services. Employees should be train for better customer service. Improvement in the salary package of lower staff (messenger, office boy) There should be some criteria for bonuses on the bases of performance of each employee reward should be assigned. ATM machine must be installed so that increases the income of branch. No entrance in the cash counters because this area is very sensitive and only the cashier is allowed no other staff member. Cashiers major responsibility is to balance the cash at the end of day. When the cash is balance then other task can proceed such as Backup of after, before, offsite and week end day. Print all the sheets Send data to IT department Keep back up in order to maintain hand copy of data.

 Online banking system for the entry of transaction was limitation because every employee is responsible for his/her assigned task. In case if any wrong entry is made then this will out the cash balance and create problem at the end of day. Prohibited area is strong room where vault register and cash is kept only three employees are allowed who got the keys of strong room i.e. Manager, operation manager and the casher. There should be three security personnel in the bank. One at outer side of main gate, other on inner side and the third near lockers.

Conclusion
The Bank of Punjab (BOP) is a good Organization in the way that it can be the dream of every person to join it for his/ her long-term career. Overall working environment is friendly and comfortable. Management is very strong and above that its a government bank. Employees of Bank of Punjab Bahawalnagar Branch work more than their working hours, this shows the willingness of the workers to perform their duty. It also shows their loyalty, commitment to organization. Due to all these commitment and loyalty of workers it is considered in best branch of THE BANK OF PUNJAB. Within short period of time this branch reached in top six branches of Bank of Punjab due to employees efforts.

ANNEXURE

Balance sheet
For the year ended December 31, 2006, 2007, 2008

Note Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets Total assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinate loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities Total liabilities Net Assets Represented By Share capital

2008

2007 Rupees in 000

2006

10,685,057.00 2,178,455.00 633,333.00 22,711,980.00

14,210,302.00 1,927,662.00 2,450,000.00 73,461,695.00

14,054,859.00 3,722,089.00 11,846,823.00 28,233,211.00

131,731,158.00 133,893,585.00 101,319,954.00 3,471,838.00 8,388,162.00 6,109,137.00 3,252,759.00 5,778,192.00 2,068,744.00 3,609,457.00

185,909,120.00 234,974,195.00 164,855,137.00

1,219,801.00 12,278,773.00 64,072,532.00 30,632.00 4,564,257.00

937,647.00 17,842,915.00

856,448.00 6,989,424.00

191,968,909.00 137,727,606.00 40,321.00 2,205,530.00 2,983,079.00 40,988.00 298,616.00 2,816,341.00 16,125,714.00 2,902,490.00 4,537,232.00

182,165,995.00 18,995,794.00 3,743,125.00 5,287,974.00 7,427,232.00 4,230,379.00 7,427,232.00

Reserves Un-appropriated profit Total Surplus on revaluation of assets - net

(7,658,686.00) 5,056,520.00 (1,313,395.00) 3,743,125.00

3,452,842.00 15,110,453.00 3,885,341.00 18,995,794.00

3,219,246.00 10,658,968.00 5,466,746.00 16,125,714.00

Profit and Loss Account For the year ended December 31, 2006, 2007, 2008

Note

2008

2007 Rupees in 000

2006

Description Mark-up/return/interest earned Mark-up/return/interest expensed Net mark-up/ interest income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly

17,752,969 16,614,000 1,138,969 18,863,580 366,387

17,539,094 13,939,377 3,599,717 1,616,421 24,479 246,869 1,887,769

11,579,036 7,508,795 4,070,241 340,626 33,000 100 373,726 3,696,515 473,212 1,385,875 239,804 389,063

19,229,967

Net mark-up/ interest income after provisions Non Mark-up/interest Income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale and redemption of securities Unrealized gain / (Loss) on revaluation of investments classified as held for trading Other income Total non-mark-up/interest income

(18,090,998) 1,711,948 577,630 2,020,896 324,328 733,787 653,512 1,804,878 377,233 2,039,535

526,185 4,182,826

547,635 5,422,793

466,435 2,954,389

Other charges Total non-mark-up/interest expenses

114,700 2,924,734 (16,832,906)

37,950 2,289,019 4,845,722 4,845,722 169,252 (19,921) 250,772 400,103 4,445,619 3,219,246 5,866 3,225,112 7,670,731 10.51 11.51

38 1,882,183 4,768,721 4,768,721 880,997 83,469 964,466 3,804,255 169,817 6,174 175,991 3,980,246 9.01 9.01

Extra ordinary/unusual items Profit Before Taxation Taxation - Current - Prior years - Deferred

(16,832,906) 207,600 1,052,000 (8,033,001) (6,773,401)

Profit After Taxation Un-appropriated profit brought forward Transfer from surplus on revaluation of fixed assets - net of tax

(10,059,505) 3,452,842 5,572 3,458,414

Profit available for appropriation Basic Earnings per share Rupees Diluted Earnings per share Rupees

(6,601,091) (19.02) (19.02)

(13,908,172) 7,134,741 Non Mark-up/interest Expenses Administrative expenses Provision against lending to financial institutions Provision against off balance sheet items Provision against receivable from NIT 2,799,933 10,101 292 2,250,777 -

6,650,904 1,751,970 130,000 175 -